Adjusted operating profits soared in the first half from £2.6m to £9.2m at merchant bank and stockbroking group Numis Corporation (NUM), thanks to a 41 per cent rise in institutional commission and trading revenues to a record £19m. And income from corporate transactions, including three initial public offerings (IPOs) and four retail bond offerings, rose from £6.8m to £10m.
Notable deals included the successful flotation of Crest Nicholson and esure, together with retail bond launches for Workspace, Unite and St Modwen Properties. In total, equity finance raised on behalf of clients more than trebled to £575m, or just under 6 per cent of total issuance on the London Stock Exchange. Numis now has 150 corporate clients, having added 18 in the period, and this boosted retainer fees by 14 per cent to £3.37m. The group also secured its largest ever new broking client by market capitalisation (£2.6bn), after being appointed as joint broker to Daily Mail and General Trust.
Finances are in good shape, too, with cash balances up from £35.9m to £54.8m, thanks to strong net cash inflows, which included a £12m realisation on the group's investment portfolio. Consequently, the valuation of the investment portfolio fell from £17.8m to £7.4m.
| NUMIS CORPORATION (NUM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 152p | MARKET VALUE: | £177m | |
| TOUCH: | 146-153p | 12-MONTH HIGH: | 162p | LOW: 79p |
| DIVIDEND YIELD: | 5.3% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 87p | NET CASH: | £54.8m | |
| Half-year to 31 Mar | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2012 | -1.14 | -0.60 | 4.00 |
| 2013 | 9.02 | 7.50 | 4.00 |
| % change | - | - | - |
Ex-div: 15 May Payment: 28 Jun | |||
